Tag Archives: oil

Oil Price: Accelerated refinery set to end ‘fluctuation’ – LCCI

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The LCCI DG said that to cushion the effects of petrol price increases on domestic prices, there was also an urgent need to scale up investment in mass transit transportation systems.

The Lagos Chamber of Commerce and Industry (LCCI) says accelerated domestic refining and processing of petroleum products would end the unstable petroleum pricing in the country, Dr Muda Yusuf, Director-Genera of the Chamber, said in an interview with NoRM‘s known Media on Saturday in Lagos.

He explained that this action was necessary to prevent both the deregulation policy from being derailed and a return to a subsidy regime fraught with corrupt practices.

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Yusuf also called for a competitive market framework to enable the deregulation achieve positive impact, saying that quick approval of domestic refinery operations would boost access to petroleum products for economic development

The LCCI DG blamed NNPC’s monopolistic supply structure for the inability of Nigerians and the economy to benefit from the positives of deregulation.

Yusuf stressed that government needs to urgently put appropriate structures in place to ensure a level playing field and for the deregulation regime to achieve its objectives, because private sector players were strapped for foreign exchange to import petroleum products, while the refineries remained comatoe.

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“A deregulated pricing regime is typically volatile, oscillating with global oil price. However, deregulation without competition would not give desired outcomes”, Yusuf said, adding, “We are still immersed in a monopolistic structure even as we claim to have deregulated the petroleum downstream sector”.

Similarly, Yusuf added: “The power sector recovery programme should also be accelerated to reduce the dependence of Micro, Small and Medium Enterprises (MSME) on petrol powered electricity generators.

“These two areas of intervention would reduce the adverse impact of petrol price volatility on small businesses and impact on the welfare of the citizens.


#Newsworthy…

Iran issue warning to US against seizure of oil tanker to Venezuela.

Reports suggest four US Navy warships are in the Caribbean for a ‘possible confrontation with Iran’s tankers’.


Iran’s foreign minister on Sunday warned the United States against deploying its navy in the Caribbean to disrupt Iranian fuel shipments to Venezuela.

According to an oil shipment analyst, five Iranian-flagged tankers loaded with tens of millions of dollars worth of fuel are heading towards Venezuela.

In a letter to United Nations chief Antonio Guterres, Mohammad Javad Zarif warned against “America’s movements in deploying its navy to the Caribbean in order to intervene and create disruption in [the] transfer of Iran’s fuel to Venezuela”.

He said any such action would be “illegal and a form of piracy” adding the US would be responsible for “the consequences”, according to a foreign ministry statement.

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A senior official in US President Donald Trump’s administration told Reuters news agency on Thursday that the US was considering measures it could take in response to Iran’s shipment of fuel to crisis-stricken Venezuela.

Iran’s Fars News reported on Saturday it received information that four US Navy warships are in the Caribbean for a “possible confrontation with Iran’s tankers”.

Zarif’s deputy summoned the Swiss ambassador, who represents Washington’s interests in Tehran, to communicate Iran’s “serious warning” on Sunday. Abbas Araghchi said any potential threat to Iran’s tankers would be met with a “quick and decisive response”.

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The US has imposed unilateral sanctions aimed at ending oil exports by both Iran and Venezuela, both major crude producers.

Full speed ahead
Five Iranian tankers likely carrying at least $45.5m worth of petrol and similar products are now sailing to Venezuela, part of a wider deal between the two US-sanctioned nations amid heightened tensions between Tehran and Washington.

The tankers’ voyage come after Venezuela’s socialist leader Nicolas Maduro already turned to Iran for help in flying in chemicals needed at an aging refinery amid a petrol shortage, a symptom of the wider economic and political chaos gripping Latin America’s one-time largest oil producer.

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For Iran, the tankers represent a way to bring money into its cash-starved country and put its own pressure on the US, which, under President Trump, has pursued maximalist campaigns against both nations.

But the strategy invites the chance of a renewed confrontation between the Islamic Republic and the US both in the Gulf, which saw a series of escalating incidents often involving the oil industry last year, and wider afield.

“This is like a new one for everyone,” said Captain Ranjith Raja, an analyst who tracks oil shipments by sea at the data firm Refinitiv, of the petrol shipments. “We haven’t seen anything like this before.”

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All the vessels involved belong to Iranian state-owned or state-linked companies, flying under the Iranian flag. Since a pressure campaign on Iranian vessels began, notably with the temporary seizure of an Iranian tanker last year by Gibraltar, the country’s ships have been unable to fly flags of convenience of other nations, a common practice in international shipping.

Nothing to lose
The ships all appear to have been loaded from the Persian Gulf Star Refinery near Bandar Abbas, Iran, which makes petrol, Raja said. The ships then travelled around the Arabian Peninsula and through the Suez Canal into the Mediterranean Sea, according to data collected from the ship’s Automatic Identification System, or AIS, which acts as a tracking beacon.

Given the crushing US sanctions imposed on Iran, also-sanctioned Venezuela appears to be a country that would have nothing to lose from accepting the shipments.

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Raja said Refinitiv had no data on any Iranian petrol shipment ever going to South America before.

TankerTrackers.com, a website focused on the oil trade at sea, first reported the ships likely were heading to Venezuela.

The capacity of the five ships is some 175,000 metric tonnes. On the open market, the petrol and product carried within them would be worth at least $45.5m, though Iran likely reached a discounted, non-cash deal with Caracas given the circumstances the two nations face, Raja said.

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It remains unclear how the US will respond to the tankers. On Thursday, the US Treasury, State Department and Coast Guard issued an advisory warning the maritime industry of illegal shipping and sanctions-dodging tactics by countries including Iran.

The advisory repeated an earlier promise of up to $15m for information disrupting the Revolutionary Guard’s finances. It also warned anyone “knowingly engaged in a significant transaction for the purchase, acquisition, sale, transport or marketing of petroleum” faced US sanctions.

The US State Department and the Pentagon did not immediately respond to a request for comment.

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Analysts already have been warning about the growing chance for a renewed confrontation between the US and Iran.

In April, the US accused Iran of conducting “dangerous and harassing” manoeuvres near American warships in the northern Gulf.


#Newsworthy…

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Oil market now rebalancing – OPEC sees.


The rebalancing of the oil market is underway and will accelerate, the OPEC cartel said Wednesday, days after some of its members voluntarily increased their production cuts.

The world oil market was thrown into disarray earlier this year as lockdown measures imposed by governments to slow the spread of the coronavirus led to plunge in demand just as crude producers had been stepping up output in a war for market share.

Prices tumbled, with the price of the benchmark US oil futures contract briefly plunging below zero.

But OPEC and its allies have agreed on major cuts in production, by 9.7 million barrels per day, and the cartel believes an improvement is on the horizon.

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“The speedy supply adjustments in addressing the current acute imbalance in the global oil market has already started showing positive response, with rebalancing expected to pick up faster in the coming quarters,” OPEC said in its monthly report.

The collapse in oil prices — the main international benchmark has fallen by half since the start of the year — is leading some producers to shut down wells and the cartel now expects non-OPEC production to decline by 3.5 million barrels per day this year.

It believes the worst drop in demand will be recorded in the current April-June quarter.

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The easing of restrictions and the massive stimulus programmes adopted by governments could now help the market bounce back.

OPEC said it now expects daily demand in 2020 to drop by some 8.5 million barrels per day from last year’s level, which is a roughly 8.5 percent drop.


#Newsworthy…

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2020: Nigerian govt to reduce oil benchmark from $30 to $20 per barrel – Finance Minister.

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Plans are ongoing by the Federal Government to review the 2020 budget to reflect an oil benchmark of $20 per barrel.

A report gathered by NobleReporters quoted that the Minister of Finance, Budget and National Planning Minister, Zainab Ahmed, who disclosed this on Tuesday during a web conference about the impact of low oil prices on Nigeria’s economy.

A further downward revision will mean that the Federal Government has now dropped the benchmark from an initial $57 per barrel to $30.

NobleReporters learnt that Mrs Ahmed also intimated on plans by FG to cut oil production to 1.7 million barrels per day (mbpd), from the 2.1 mbpd previously proposed in the budget.

“We are in the process of an amendment that is bringing down the revenue indicator to $20 per barrel.”

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Other key highlights from the conference include; plans to defer debt service obligations to 2021 and beyond until macro conditions improve.

An 80% drop in estimated net oil & gas revenue available for Federation Account Allocation Committee (FAAC) distribution to N1.1 trillion against the N5.5 trillion previously earmarked.

A marginal drop in Customs projected revenue to N1.2 trillion in 2020 from the previous N1.5 trillion.

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While the amount accruable to the federation account is now projected at N3.9 trillion from the initial N8.6 trillion.

The government is also looking at providing support for the aviation sector as part of measures to alleviate the impact of COVID-19.


#Newsworthy…

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Nigerian govt revokes 11 oil and gas companies.


The Federal Government has revoked the mining licences of about 11 oil and gas companies operating in the marginal fields.

It was learnt that the affected companies include, Movido – Ekeh, Goland – Oriri, Independent Energy – Ofa, Associated – Tom Shot Bank, Bayelsa – Ayala, Sogenal – Akepo and Delsigma – Ke. Others are Bicta – Ogedeh, Guarantee – Ororo, Eurafic – Dawes Island and Sahara – Tsekelewu.

NobleReporters gathered that the companies were served letters yesterday to hands off the assets, the spokesman for the Department of Petroleum Resources (DPR), Paul Osu, who did not directly confirm the development, requested time to establish the truth . But he justified any decision to terminate the licences, stating that the companies had been offered enough time to turn the assets around.

Osu insisted that should the Federal Government revoke the licences, it was in the best interest of Nigerians, particularly as there was the urgent need to derive maximum value from available resources. Another top official at the DPR, however, confirmed the revocation.

N.Rs heard that some of the companies had gone far in their operations and were simply waiting for the DPR to grant necessary permits to conduct well tests, start production, evacuate and sell.

Indeed, some of the companies had reportedly produced oil and stored in storage tanks while others already had their crude in export pipelines and had paid Petroleum Profits Tax (PPT) and Royalties to the Federal Government.

The licences were offered in 2013 and the companies were expected to bring the fields into production in five years, but they were offered extension.

Some of the operators contacted by The Guardian declined comment, stating that they would need to convene their boards before taking a stand.

NobleReporters learnt that the group might question the government in court since they had made tremendous investment and had borrowed to develop the fields to their current state.

There are indications that the Federal Government was forced to revoke the licences by the mounting pressure over declining revenue as oil price has drastically dropped below budget benchmark in the face of the economic challenges following the outbreak of coronavirus.

With the level of uncertainty in the nation’s oil and gas industry and the harsh operating environment, some stakeholders believe that the current development would further deter investment and impede projected growth in the nation’s oil and gas industry.

“It is sad that government can just wake up and revoke licences. This is not good for investment and the image of the country before the international community. There is unpredictability, which does not speak well for the government.

“This is not a well thought-out plan. It appears it was taken in a haste and out of desperation,” a source, who pleaded anonymity said.

The development is also raising issues on the sanctity of contracts which have bedeviled the sector and are evidenced in the declining investment in the sector.

Meanwhile, the Peoples Democratic Party (PDP) has alleged that the fuel subsidy regime under the President MuhammaduBuhari-led administration is a monumental fraud.

The party, in a statement yesterday by its National Publicity Secretary, Kola Ologbondiyan, described Monday’s declaration by the Nigerian National Petroleum Corporation (NNPC) Group Managing Director, MeleKyari, that there would be no more subsidy and under-recovery as dramatic.

“Our party notes that if the Federal Government is running away from its subsidy policy, the substantive Minister of Petroleum Resources, President Muhammadu Buhari or his Minister of State, Timi Sylva, should muster the courage to announce this to Nigerians through a policy statement.”

The statement continued:
“Our party holds that this sudden announcement of an end to fuel subsidy and commencement of a deregulation regime of the oil sector is a desperate step by the Buhari administration to stave off an investigation into the siphoning of trillions of naira by All Progressives Congress (APC) leaders using phony subsidy claims.”

The statement recalled that in his bid to smear the PDP, President Buhari, while leading the agitation against the decision by the PDP administration to deregulate the oil sector in 2012, declared that fuel subsidy did not exist. He had called the subsidy regime and its operators a fraud.

“Could this be the reason behind Mr. President’s inability to make any concrete statement on the exposed subsidy scam under his administration in the last five years? Could it also be the reason the oil subsidy, which Nigerians were enjoying under the PDP, was adjudged a fraud but suddenly ceased to be a fraud from 2015 till Monday, even when Nigerians no longer enjoyed any benefit from the payout within this period?” the statement queried.

PDP said “Nigerians now know the reason the APC administration had refused to allow for an independent inquest into the alleged N1.4 trillion oil subsidy sleaze through which certain APC leaders were benefiting from alleged N58 hidden toll per litre which Nigerians were forced to bear for years, after fuel price was increased by the APC administration from the PDP’s subsidized cost of N87 to N145 per litre.”

According to the opposition party,” It is now clear to all why the APC administration had resorted to muddling up oil revenue transactions, refused to open up on federation equity of crude while frustrating the free flow of information on product exchange and revenue remittances, and why they have been promoting reports on imaginary pipeline losses as well as other opaque and non-transparent transaction in a sector that is directly under the supervision of Mr. President.

“This is in addition to the over N14 trillion stolen through various shady oil subsidy contracts, including the stolen N9 trillion detailed by the leaked NNPC memo and the N1.1 trillion worth of crude stolen with 18 unregistered vessels linked to APC interests, all of which the Buhari Presidency had refused to investigate despite demands by Nigerians.”

The PDP demanded “forensic audit of all the fraudulent under-recoveries, through which funds meant for subsidy were diverted to private pockets of APC leaders.The PDP is also demanding a forensic audit of over-bloated 60 million litres of petrol that NNPC claimed it was importing under its former GMD, Dr. Maikanti Baru, to justify the fraudulent subsidy pay out.”

The opposition party urged the National Assembly to “stand on the side of Nigerians to expose all those involved, who got what in this huge scam against our nation as well as take steps to recover the over N14 trillion stolen and channel the same for the welfare of Nigerians especially at this critical time.”


#Newsworthy…

Oil price war: Can Saudi Arabia really begin this war.


It was the last thing a slowing global economy needed.

With the coronavirus pandemic hammering international travel, supply chains and production, Saudi Arabia delivered another shock to the system by declaring an oil price war.

On March 6, having failed to convince Russia to agree to deep production cuts aimed at shoring up crude prices against the demand destruction unleashed by coronavirus, Saudi Arabia-led OPEC retaliated by announcing it would start pumping crude with abandon.

The next day, the kingdom lowered the price it charges for oil. Come March 9, the markets delivered their verdict. Oil prices crashed 30 percent at one point – the biggest one-day drop since the 1991 Gulf War.

Though some of those losses were pared, announcements of pending production boosts next month by the kingdom and other Gulf producers ensured oil prices had their worst week since the 2008 financial crisis.

The price war is a gamble for the kingdom, one that could either pay off or land it in a deep hole.

Dramatically lower oil prices set up Saudi Arabia, which can produce oil more cheaply than any other country, to steal market share: both from the world’s second-biggest oil producer-Russia-as well as higher-cost United States shale oil producers.

But analysts say it could come at a cost to Saudi Arabia and the ambitious plan of its de facto leader Crown Prince Mohammed bin Salman (MBS), to break the kingdom’s oil-dependence and set it up for a more prosperous future.

A transformation in trouble
Crude accounts for roughly 80 percent of Saudi Arabia’s revenues, and that level of fossil fuel dependence comes with huge drawbacks.

As oil prices rise and fall, so too do the kingdom’s fortunes, which can stall plans and force tough spending choices.

The future is also moving against oil, with the Paris Climate Agreement spurring more governments to reduce emissions and petroleum products like plastic raising environmental alarms.

The kingdom needs to diversify its economy, and soonest. But that is easier said than done. Overdependence on any commodity for export effectively salts the earth where other productive sectors could take root.

Vision 2030 seeks to spring the kingdom from this trap by reinvesting fossil fuel wealth into sustainable industries of the future, shrinking a bloated state sector, and creating a thriving, diversified private sector to employ the kingdom’s youthful workforce.

And the government does not see itself doing all of this alone. A successful transformation also hinges on convincing investors, both foreign and domestic, to buy into MBS’s vision.

On many counts though, the blueprint for transformation was struggling even before Riyadh fell out with Moscow.

“Vision 2030 was already lagging on most of its interim targets for 2020,” Laura James, senior Middle East analyst at Oxford Analytica, NobleReporters

A cornerstone of raising cash to reinvest into other sectors was the much-hyped initial public offering (IPO) of Saudi state oil giant Aramco.

As it neared its delayed debut late last year on Riyadh’s Tadawul stock exchange, an attack on Aramco’s facilities in September reminded investors of the geopolitical risk festooning the company and its operations.

After failing to attract sufficient international interest, MBS pressured wealthy Saudis to step up and buy a piece of the company. The IPO raised a record $29.4bn, effectively valuing the firm at $1.7 trillion- well shy of the $2 trillion MBS had originally sought.

Now, the oil price war is hammering shares of Saudi Arabian Oil Co -as Aramco is officially known.

The stock fell 12 percent last week and continued to slide on Sunday, after Aramco announced it is cutting capital spending this year in response to coronavirus, and reported a 21 percent decline in 2019 net profits due to lower oil prices.

On Monday, Aramco is due to hold a webcast to discuss its full-year results. Company executives could be grilled over whether pumping crude full-throttle is in the best interests shareholders.

Another Vision 2030 metric – foreign direct investment (FDI) in the kingdom- has also been lacklustre. Though it recovered to $3.2bn in 2018 having not even cracked $2bn the previous year, FDI was still way down from the $8.1bn achieved in 2015 and a mere fraction of the $29.2bn the kingdom attracted in 2010, according to the United Nations Conference on Trade and Development.

Growth in the kingdom’s non-oil private sector is another benchmark. It was looking promising, until it started slowing in December and continued to decelerate in January. February saw the slowest growth in two years, as output and new orders fell, thanks to disruptions spawned by the coronavirus.

Now, the fiscal stress of an oil price war could make non-oil sector growth even harder to achieve.

Austerity on tap
The kingdom has healthy foreign exchange reserves, roughly $500bn, to ride out a price war, and it does enjoy the lowest production costs among all oil producers.

The Saudis “can still turn-out a profit at these low oil prices, at least for a time,” Tarik Yousef, director at Brookings Doha Center, a nonprofit public policy organization, told Al Jazeera.

Balancing its budget, however, is another story.

The International Monetary Fund reckons the kingdom needs oil to fetch around $83 a barrel to balance its state budget.

Global benchmark Brent crude last traded at $33.84 a barrel on Friday.

Goldman Sachs reckons that should oil prices average $30 a barrel over the next two quarters and the kingdom boosts output by 10 percent, its budget deficit could swell to 12 percent of gross domestic product (GDP) this year -nearly double its fiscal deficit target.

That would increase the government’s financing requirement by $36bn.

There could be a silver lining. Goldman estimates that if oil prices recover to $60 a barrel by the end of 2021, the kingdom’s budget deficit could narrow to less than 2 percent of GDP by 2022.

But if oil prices only recover to $50 a barrel by the end of next year, Goldman sees the budget deficit remaining “wider for longer, implying an additional $63bn in funding requirements” over the next two years.

More drama
Austerity measures may have been in the cards before the kingdom declared a price war, as Riyadh prepared for slowing oil demand in the face of coronavirus.

State agencies were asked to submit proposals for slashing 20 to 30 percent from their 2020 budgets before the kingdom fell out with Russia, Reuters News Agency reported, citing sources. One source said salaries would not be touched, but projects and the awarding of new contracts could be delayed.

“With salaries largely protected, the impact could be on capital expenditure, which will have a knock-on impact on the private sector and likely hinder diversification efforts,” said James.

Shielding salaries helps maintain loyalty, which is important for any ruler, especially one surrounded by intrigue.

The price war was not the only Saudi drama unfolding while the alliance between OPEC and Russia was collapsing.

Two of the royal family’s most influential members, Prince Ahmed bin Abdul Aziz, the youngest brother of King Salman, and Mohammed bin Nayef, the former crown prince and interior minister, were reportedly being detained in Riyadh. Both men are seen as legitimate contenders for the throne, sparking speculation that at the very least, MBS was making a move to consolidate his power.

The price war “threatens stability at a time where MBS is already facing political pressure and possibly threats from within the royal family as evidenced by the recent arrests,” said Yousef.

Which makes pulling off an economic transformation like Vision 2030 that much harder, say analysts.

“It’s tougher for oil-dependent countries that need higher prices to fund their budgets,” Jim Krane, Wallace S Wilson Fellow in Energy Studies at Rice University’s Baker Institute for Public Policy said. NobleReporters learnt

“If they cut spending too much, they could have a rebellion on their hands. Saudi Arabia is vulnerable in this respect.”


#Newsworthy…

Oil fall: Professionals calls for immediate development.


Some economic experts, on Thursday, expressed the need for the Federal Government to immediately and purposefully develop the non-oil sector to mitigate the effect of slump in oil price in the international market.

The experts gave the advice, while speaking with newsmen in Ibadan on the implications of falling oil price.

A Policy Economist, Dr Olumuyiwa Alaba, told newsmen that government must, as a matter of urgency, build the sectors that would sustain the value of the Naira in the face of oil price crash.

He said that the implications of the slump in oil price was that the nation was likely to run a budget deficit close to about N5 trillion, if the current budget was not reviewed.

“We might not be able to do any capital project, because we were only struggling to do capital projects even when things were going well for us.

“It means we are going to borrow massively to sustain the budget. This, by implication, means that our debt profile will increase.

“Government will have borrow more, both domestically and internationally, as it must meet its obligations in terms of being able to pay salaries and so on.

“If the rest of the world trusts us, we can increase our foreign debt profile, as borrowing internally will crowd out the private sector, thus pushing it out of the market,” he said.

According to him, proactive measures were needed to sustain the economy, in terms of strengthening the macroeconomic fundamentals.

He expressed the fears that inflation as well as interest rates might rise, if proper actions were not taken.

Alaba said the country might not escape devaluation of naira, if oil prices keep falling.

He opined that the border closure had not really helped legal trade to thrive but the illegal ones, as the Nigeria Customs Service kept seizing illegally-imported goods at various stores in the country.

The policy economist, however, enjoined the Central Bank of Nigeria (CBN) to focus on its core functions, which, he said, were monetary policy, reserve management and foreign exchange management.

Another financial expert, Mr Tunji Adepeju, said that government was taking the right measures by reviewing the 2020 budget to meet the present realities.

“The good thing is that we are already looking at other sources of revenue, that is, the non-oil sector.

“The reserve from the non-oil sector has risen, particularly taxes, while solid minerals and tourism too are moving up.

“Government should review everything and come to terms with what is going on.

“The implication of this is not being able to finance the budget and depletion of our foreign reserves,” he said.

Concerning the proposed N22 billion loan, Adepeju said the Federal Government had no other option than to borrow, especially for infrastructural development.

“Owing to the fact that the revenue source to support or finance such development is not available, borrowing is the only option left,” he said.

Adepeju, however, said that if the country must borrow, it must be for specific purposes.

“All that is left is for Nigerians to monitor and ensure that such monies are used for the purpose for which they are meant,” he said.

The experts, however, said that they expected growth in the economy to translate into good living conditions for Nigerians, with the hope that if managed well, the nation’s economy would not slide into recession for the second time.

Newsmen report that oil price slumped to $30 per barrel on Monday, but picked up to $37 per barrel on Tuesday.

Some experts have hinged this development on the effects of the trade and technology wars between Saudi Arabia and Russia, and more importantly, the spread of Coronavirus across the world.


#Newsworthy..

Savannah oil seals Gas supply with FIPL ..


Efforts to guarantee stable electricity supply may have received the desired boost as Savannah Petroleum Plc, has announced that Accugas has entered into a new interruptible gas sales agreement (“IGSA”) with First Independent Power Limited (“FIPL”) for the provision of gas sales to the FIPL Afam power plant (“FIPL Afam”).

FIPL is an affiliate company of Sahara Group, a leading international energy and infrastructure conglomerate with operations in over 42 countries across Africa, the Middle East, Europe and Asia.


Afam has a current power generation capacity of 180MW. The FIPL IGSA envisages the supply of gas (produced by Uquo, with a maximum daily nominated quantity of 35 mmscfd or approximately 5.8 mmboed) by Accugas to FIPL Afam in order to augment its existing gas supply on an interruptible basis for an initial term of one year with the ability to extend upon mutual agreement.

Securing an additional gas supplier to the FIPL Afam plant is another demonstration of FIPL’s commitment to its vision of being a stable power generation significantly contributing to the national grid.


Accugas currently sells to three customers, Calabar Nigerian National Integrated Power Plant, National Integrated Power Project (a Niger Delta Power Holding Company-owned power station), the Mfamosing Cement Plant (located in Cross River State, owned by Lafarge Africa Plc) and Ibom Power (a power station owned by Akwa Ibom State), for an aggregate maintenance-adjusted 2020 take or pay volume of 141.4 mmscfd.

The commercial terms of the FIPL IGSA are expected to augment the weighted average profitability of the Accugas portfolio while Accugas’ sales volumes, revenues and cash flows are expected to increase with no incremental capital expenditure.


Accugas continues to make good progress in relation to gas supply to several other potential new customers and further updates will be provided in due course.

Commenting on the deal, CEO of Savannah Petroleum Andrew Knott said: “I am delighted to announce the IGSA with FIPL, representing the first new gas sales agreement that the Accugas business has signed in over five years, and we look forward to partnering with the Sahara Group, who have notable experience with energy and infrastructure projects in Africa.

“We are confident that this will be the first of several new gas sales agreements signed over the course of 2020 and, through Accugas, we aim to be seen as the gas supplier of choice to the power sector in Nigeria.”

Group Managing Director, Sahara Power Group, Mr. Kola Adesina said: “We are delighted to be working with Accugas on this project. It is another demonstration of our commitment to bringing energy to life by facilitating economic activities through our power business. We remain resolute in our vision to enhance access to sustainable energy in Nigeria and ultimately, across Africa.”


#Newsworthy…

Nigeria set to lose $4.2m daily as oil price shakes ..


The implementation of Nigeria’s 2020 budget may suffer setback over the China’s recent outbreak of Coronavirus, forcing oil price to three-month low of $58 per barrel yesterday, from $60 last week

With this development, Nigeria may be losing about $2 per barrel. The Federal Government had in its 2020 budget benchmarked oil price at $60 per barrel, and a daily production of 2.1 million barrels per day (bpd).

Multiple sources familiar with trends in the global oil market are worried that the the disease may see oil price decline further in the weeks ahead.


China, which is a major market for crude oil in the world, appears to have slowed on its demand as major companies in need of fossil fuel are shutting down operations over fears of virus spreading further.

China’s coronavirus outbreak has rattled oil markets, sending prices sharply lower as investors worry that efforts to prevent it spreading will harm the country’s economy and reduce demand for crude.


Brent crude futures traded around 3% lower on Monday at $58.00 a barrel, their lowest level since October. US crude futures were down roughly 3 per cent.

The price of Brent, the global benchmark, has tumbled by about 10% since January 17, when Chinese authorities confirmed the death of a second person infected with the virus. It has spread rapidly since then, leading the Chinese government to impose restrictions on transportation. Full, or partial lockdowns, are in effect in 15 Chinese cities, covering 60 million people.


The death toll now stands at 80, with nearly 3,000 confirmed cases in mainland China and more than 50 in other places including the United States.

“As the human cost continues to rise, investors have become increasingly concerned about the potential economic consequences of the disease,” analysts at Rabobank said in a research note.


The virus could further weaken the Chinese economy, the world’s second biggest, which had already slumped to its slowest pace of growth in nearly three decades in 2019.

Ratings agency S&P Global said last week that China’s economic growth could contract by as much as 1.2 percentage points this year if spending on services such as transport and entertainment fall by 10 per cent.


There are big implications for energy markets. China is the world’s second-largest consumer of oil, according to the International Energy Agency, and reduced economic activity means less demand. Stephen Innes, chief market strategist at AxiCorp, said in a research note that travel restrictions would crimp demand for products made from crude oil, such as jet fuel.

Other economies are unlikely to pick up the slack. The International Monetary Fund last week downgraded its growth forecast for the global economy in 2020 to a tepid 3.3 per cent.

The coronavirus outbreak comes at a particularly bad time for oil prices, which were already under pressure from a global supply glut.

“The virus is fueling fears of cooling of oil demand, which would mean that the global oil market would be oversupplied to an even greater extent,” analysts at Commerzbank said in a research note.


#Newsworthy…

Malabu oil scam: Adoke plead innocent


A High Court of the Federal Capital Territory (FCT) sitting in Gwagwalada, Abuja, on Thursday ordered the remand of a former Attorney-General of the Federation and Minister of Justice, Mr. Mohammed Adoke (SAN), and two of his co-defendants in the custody of the Economic and Financial Crimes Commission (EFCC) over their alleged involvement in the Malabu Oil scam.

Justice Idris Kutigi, made the remand order after all the defendants entered a plea of not guilty to the 42- count charges preferred against them by the EFCC.


The judge further adjourned the trial to Monday when the separate bail applications filed by the defendants would be heard.

Although, Justice Kutigi, had initially indicated intention to order the remand of the defendants in prison, he later changed his mind and asked EFCC to take keep them in their custody.


This was moreso that the prosecution counsel, Bala Sanga, who had initially urged the court to remand them in prison custody, succumbed to the pleas by the defence lawyers that the commision should hold their clients pending the hearing of their bail applications.

Meanwhile, Adoke was arrested by the EFCC on his return to Nigeria from a four-year exile on December 19, 2019.

Former Attorney-General of the Federation and Minister of Justice, Mr. Mohammed Adoke (SAN)


He has since been in the detention of the EFCC and was produced in court from their on Thursday.

The seven defendants, four of whom are corporate organisations, pleaded not guilty to the 42 counts instituted against them by the EFCC.


#Newsworthy…

Malabu oil fraud: Moh’d Adoke arrive court


The immediate past Attorney General of the Federation and Minister of Justice, Mohammed Adoke (SAN) will this afternoon be arraigned on fraud charges by the Economic and Financial Crimes Commission (EFCC).

Already, Adoke has been brought to the Gwagwalada division of the High Court of the Federal Capital Territory (FCT) Abuja, for his arraignment before Justice Idris Kutigi.


Dressed in a white caftan with a cap to match, Adoke who was clutching a walking stick appeared pale as he stepped out of the bus that conveyed him to court.

While in the courtroom, the former AGF exchanged pleasantries with some senior lawyers in court, including Wole Olanikpekun (SAN), Chief Mike Ozekhome (SAN), Solomon Umoh (SAN); Olalekan Ojo (SAN), Paul Erokoro (SAN) and A.U. Mustapha (SAN).


#Newsworthy…

Soku oil: Bayelsa ask judgement in rivers favour


The dispute of over the ownership of Soku Oil wells between Bayelsa and Rivers State Governments is not yet over as Bayelsa State Government has appealed the judgment of the Federal High Court, Abuja, which ceded the disputed oil wells to Rivers.

Solicitor General of Bayelsa State, Mreye Agada, who led the state’s legal team to file the appeal on behalf of the State Attorney General, said that the state is seeking a stay of execution of the judgment pending the resolution of the matter.


Agada noted that the lower court delivered judgment against the state without joining it as a party in the suit. In the motion on notice in the suit no FHC/ABJ/ CS/984/2019, he said that Bayelsa State was not served the processes in the suit before the lower court delivered the said judgment.

He also said that the state government had sought an order of the court to appeal the judgment as an interested party in the suit between Attorney General of Rivers State and National Boundaries Commission (NBC).


The Solicitor General said that Bayelsa State has written all relevant federal agencies and officials to stay action on the enforcement of the judgement.

Those who have received the letter include the Attorney General and Minister of Justice, the Minister of Finance, the Accountant General of the Federation, the Chairman, Revenue Mobilization Allocation and Fiscal Commission, and the National Boundary Commission.


He stated further that the contested oil wells, which Rivers State describes as Soku Oil Wells, are in Oluasiri in Bayelsa State, adding that Bayelsa had been receiving the 13 per cent derivation and other statutory allocations accruing from the oil wells for a long time.

He added that Bayelsa State Government had been waiting for Rivers State and the National Boundaries Commission to cooperate with the Supreme Court directive to properly delineate the disputed areas in the affected areas once and for all.


The Solicitor General said that it was rather regrettable that Rivers State Government, which pulled out of the boundary delineation exercise in 2013, surreptitiously filed the action after years of inactivity.

Agada appealed to the people of the affected communities who are all Ijaw people to await proper delineation of the boundaries between the people which, he said, did not have any effect on the historical ties and relationship between them.


Justice Inyang Ekwo had, on December 16, 2019, declared Rivers State as the owner of the disputed Soku Oil Wells/Fields located in Akuku-Toru Local Government Area of Rivers State.

The decision of the court was premised on a suit marked FHC/ABJ/ CS/984/19 filed by the Attorney-General of Rivers State against the NBC.

Justice Ekwo held that after examining all the documents from relevant government agencies and facts before the court, the Soku Oil Wells/fields belong to Rivers State.

The court, however, made an order compelling the NBC to rectify forthwith in the 12th Edition of the Administrative Map of Nigeria the erroneous interstate boundary between Rivers and Bayelsa states as contained in the extant 11th Edition of the Administrative Map of Nigeria.


#Newsworthy…

Just in – FG opens Laboratory in Port Harcourt


The Minister of State for Environment, Mrs Sharon Ikeazor, disclosed this while also inaugurating the National Oil Spill Detection and Response Agency (NOSDRA) office building in Port Harcourt.

NobleReporters learnt that NOSDRA is a parastatal under the Federal Ministry of Environment.

She said the Federal Government was worried by the activities of oil thieves that had contributed largely to crude oil spillages in the Niger Delta.


“We are sad that majority of the oil spills that occur almost on daily basis are caused by artisanal refining, pipeline vandalism, oil theft and illegal bunkering.

“The devastating impacts of oil spills on the environment, health and livelihoods of our rural and urban communities have led to land degradation, air and water pollution.


“Similarly, it led to deaths, destruction of habitats, loss of biodiversity, incidence of diseases, as well as depletion of our national revenue base,” he said.

The minister said that the National Economic Council had recently noted with concern that the country lost about 22 million barrels of crude between January and June 2019.


According to her, the illegal and inhuman practices must be stopped if the country wished to develop and progress as a nation.

“To this end, the Federal Government decided to put up a standard National Oil Spill Reference Laboratory to cater for local needs in spill management.


“I implore NOSDRA to ensure that standards are kept and maintained in line with international best practices so as to make the facility the pride of the nation

“The Federal Ministry of Environment will pay attention to NOSDRA to ensure it acquires the necessary tools to carry out its mandate in the petroleum sector,” she said.


Mr Idris Musa, Director General of NOSDRA, said with the completion of the facility, NOSDRA was now in a better position to respond to environmental challenges in the petroleum sector.

He said the laboratory was made up of four units, including, analytical chemistry, wet chemistry; microbiology and toxicology units.


“The assemblage of the state-of-the-art equipment for petroleum hydrocarbon sampling and analysis in the laboratory is revolutionary,” he said.

Also speaking, Rivers Deputy Governor, Dr Ipalibo Banigo, urged the Federal Government to speedily implement fully its policy on modular refineries.

Minister of State for Environment, Mrs Sharon Ikeazor


“The establishment of modular refineries will help reduce pollution to the environment. We want the Federal Government to take seriously its promise to implement this policy.

“We also want the International Oil Companies as well as the Nigerian Oil Companies to set up a Remote Sensing Command Centre to receive immediate signal of oil spill,” she said.


#Newsworthy…

Over N6b accrued to commission during okorocha’s regime cannot be traced – Panel


A panel set up to investigate the finances of Imo State Oil Producing Areas Development Commission (ISOPADEC) has said that over N6 billion that accrued to the commission during the years of ex-governor, Rochas Okorocha, could not be accounted for.

Chairman of the panel, Dr. Romanus Ezeogu,stated this, yesterday, during the submission of the report to Governor Emeka Ihedioha.


“The panel findings on finance and Monterey Bay transactions in the commission showed that ex-governor Okorocha had administered the accounts of the commission as a slush fund as over N6 ,044,774,341.37 could not be accounted for.

“The issue here begs for explanation on what happened to the original 40 per cent monthly derivation fund allocated to ISOPADEC. Governor Okorocha should be held responsible for the missing funds . The law establishing ISOPADEC provides its funding from the 13 per cent derivation from federation account,” Ezeogu said.


The panel also alleged that Okorcha took N422 million from the commission’s fund for the purchase pre- inauguration vehicles from Rise and Shine Motors and also diverted N200 million to purchase transformers during the 2019 campaigns.

The panel also faulted claims that Okorocha spent over N400 million at the abandoned Marine University at Osemoto in Oguta.


The panel alleged it discovered N1 billion lodged in Ecobank, Obinze branch which was withdrawn without bank details or description of any kind.

Ezeogu also disclosed that Dr Pascal Obi, former principal secretary to the ex-governor, received N35 million from the commission’s funds and recommended that he be summoned to explain what he did with the money .


The panel recommended the restructuring of the commission to ensure sustainable development in oil producing areas.

Governor Ihedioha appreciated the painstaking efforts of the panel and promised to look into the report with a view to passing a white paper.


“Going forward, it is import we get through what happened in the past if we must reposition the commission for a more efficient delivery towards realising its mandate.

It is important to note that this is not a witch-hunt. I assure a sense of justice while implementing this recommendations after the white paper must have been submitted,” Ihedioha said.


In a swift reaction, Okorocha described the Ihedioha’s administration as most vindictive and deceitful, saying nothing good would come out of it.

Okorocha who spoke through his Media Aide, Sam Onwuemeodo, said everything about Ihedioha’s administration was fraudulent, fake and deceitful.

Rochas Okorocha


“He has no programme for the people and that is why he is footdragging and chasing shadows because he lacks the capacity to govern a state like Imo. He should have gone back to the House of Representatives.

“For 12 years of PDP government in lmo, ISOPADEC operated from a rented apartment but Okorocha built a magnificent edifice as ISOPADEC headquarters, stopped militancy in the oil producing areas of ohaji, Egbema and Oguta and rehabilitated the militants, built hospitals and schools for them, empowered their youths, gave them light, started the marine university in Oguta. etc.”


#Newsworthy…

Dickson is not who I will compete with – Wike.

…says he is not in oil war with anyone

Rivers State governor, Nyesom Wike, has dismissed the allegation that he is at oil war with Akwa Ibom, Bayelsa, and Imo states.

Also, Wike also told his Bayelsa State colleague, Seriake Dickson, that he (Wike) was not causing disharmony in Ijaw land as alleged.

However, he vowed to protect the interest of Rivers, stressing that issues that affect the state would not be compromised.

Governor Wike made the statements, during a media parley at the Government House, Port Harcourt, following some statements credited to the Bayelsa State governor, Dickson.

Wike, while fielding questions from newsmen, said that he had to approach the court on oil issues with neighbouring states, stating that his action to defend Rivers should not be misinterpreted.

The governor berated his Bayelsa State counterpart for his comments on the contentious Soku oil wells, which a Federal High Court recently ruled in favour of Rivers.

According to the Rivers governor, the comments credited to Dickson after the court’s judgement was unfortunate and an act of frustration.

“It is unfortunate. As a governor, there is a level you should not descend to.

“I will protect the interest of Rivers State. It is unfortunate. I read all his comments. I understand the level of frustration and you should not lay your frustration on us”, he said.

Speaking further, Wike accused Dickson of being the one causing disharmony in Ijaw land, noting that the protocols demand that a governor should notify his colleague while planning to visit his state.

“I am not causing any disharmony in Ijaw land. He is the one trying to cause disharmony in Ijaw land.

“He does not know what protocols are all about. When you are occupying a certain position, protocols demand you to obey them.

“Protocols demand that I should be informed about the visit of the outgoing Bayelsa State governor to the Amanyabo of Kalabari Kingdom,” Wike said.

Reacting to the accusation of Wike under developing the Ijaw land, the Rivers governor declared that his colleague’s eight years in office could not march his (Wike) four years and six months in office, in terms of development.

Wike declared: “He stayed eight years in office. I have stayed four years and six months in office. Who is under developing Ijaw land?

“Bayelsa State has eight local government areas. Rivers State has 23 local government areas. Dickson cannot in all ramifications, compare with me in terms of development. He budgeted N70 billion for airport that was not built.

“There is no basis for comparison. We are not on the same level,” Wike stressed.

#Newsworthy…

Wike, Governor Insist Soku Oil Wells Belong To Rivers State.

…says the boundary shifting was a mistake

The disputed Soku oil wells belong to Rivers State, Governor Nyesom Wike has maintained.

He pointed out the Supreme Court had affirmed the oil wells belong to Rivers following admission by the National Boundary Commission (NBC) that it erroneously shifted the boundary between Rivers and Bayelsa States from River Santa Barbara to River Saint Batholomew in the 11th Edition of the Administrative Map of Nigeria.

He spoke with reporters in Port-Harcourt on Monday.

In a statement by his Special Assistant on Electronic Media, Simeon Nwakaudu, Wike said: “In 2002, the NBC altered the boundary in the 11th Edition of the Administrative Map of Nigeria.

“They made a mistake by shifting the boundary from River Santa Barbara to River St Batholomew. At the Supreme Court, the NBC wrote a letter a admitting their error.

“The Supreme Court made an order for the NBC to correct the error of the 11th Edition in the 12th Edition,” he said.

Wike lamented seven years after the Supreme Court gave the order the NBC was yet to effect the correction.

He said that preliminary report on the 12th edition indicated that the NBC made no attempt to obey the order of the Supreme Court.

“We had to sue the NBC to enforce the order of the Supreme Court where they were directed to ensure that the Boundary between Rivers and Bayelsa State is River Santa Barbara.

He said there was nothing personal in the fight for Soku Oil Wells.

“I am protecting what belongs to Rivers State Ijaw. I am protecting what belongs to Rivers State. “

He accused Bayelsa Governor Seriake Dickson of plotting to hijack the oil wells.

“The outgoing Bayelsa State Governor is the one trying to cause disharmony by attempting to collect what belongs to the Ijaw in Rivers State.”

He berated Dickson for refusing to respect the rules of Protocol when he visited the Amanyanabo of Kalabari without informing the Rivers State Government.

“The person talking about invading Rivers State in January 2020 lacks respect for Protocol. If he was well schooled, would he use that phrase that he wants to invade Rivers State?

“You have no respect. A Traditional Ruler who is a First Class ruler, recognised by Government and you say you are coming to a state as a Governor to see Rivers Ijaw people without observing Basic Protocol.

“Protocol demands you call your colleague that you are coming to the State. Even then, the Traditional Ruler failed to communicate with the State Government.

And I said, if you do this next time, I will withdraw the Recognition. I didn’t say I will dethrone him.

“I don’t make Chiefs. But I have the power to recognise or take back recognition if you run foul of the law. I have no regrets about it.

“Anyone who runs foul of the law, I will withdraw the Recognition and heaven will not fall. I never said that I will dethrone the Amanyanabo of Kalabari.

“I said that I will withdraw the Recognition by the Rivers State Government if he continues to disrespect the office of the Governor and not play according to the rules.

“How can Dickson invade Rivers State when he cannot defend Bayelsa State?”

#Newsworthy…

Customs seized foreign foods, vegetable oil, rice in Adamawa.

The Nigeria Customs Service has revealed that it seized foreign rice and some food commodities in its raid of a market in Adamawa State.

The Adamawa/Taraba command in the raid led by Comptroller of Customs in charge of the two states, Kamardin Olumoh, said that contraband goods worth millions of naira smuggled into the country were seized.

#Newsworthy…

Fuel not finding its way out of the country – DPR.

… consumption dropped in 70% in adamawa.

The quantity of petrol coming to Adamawa State has dropped from 100 trucks per day to about 30, the Department of Petroleum Resources (DPR) has disclosed.

The state Operations Controller of the DPR, Alhaji Ibrahim Ciroma, who stated this, attributed it to the closure of Nigerian land borders which has curbed smuggling.

Ciroma said while on inspection tour of the border villages in Bele in Maiha local government area and Gurin in Fufore local government area that the border closure had ended fuel racketeering across the border along the Adamawa borderline.

The DPR coordinator, who was touring filling stations 20 kilometers to the border to ensure compliance with a Federal Government directive, said the border closure had done much good in the fight against fuel smuggling.

“Prior to this closure, the number of trucks we received in Adamawa was up to 100 trucks per day but today it has dropped to between 30 and 40 trucks.

“So, it’s a clear indication that fuel is not finding its way out of the country,” Ciroma said.

Ciroma added that with the drop in supply and without scarcity in the state, “it is a confirmation that 70 trucks of the products lifted by some marketers were smuggled out of the country.”

He said compliance by filling stations in prohibited areas had been effected 100 percent, and that measures were also taken to ensure that other filling stations not within the prohibited zones were selling so that people within the prohibited zone can easily get fuel without travelling long distances.

He assured Adamawa people that they would get fuel constantly during Christmas and New Year as there is enough supply already to last the season.

“I want the people of Adamawa to be rest assured that there will be no scarcity. We have substantial quantity at the Yola depot and all filling stations are selling except those in prohibited zones.”

#Newsworthy…

Court scrap Bayelsa of oil field, Rivers grab possession.

The Abuja Division of the Federal High Court, on Monday, December 16th ordered Bayelsa State to hand-over Soku oil field to Rivers State.

The court, in a judgement that was delivered by Justice Inyang Ekwo, said it was satisfied that the oil field rightfully belonged to Rivers State. It, therefore, directed the National Boundary Commission, NBC, to rectify an error in its 11th Edition of Administrative Map, wherein San Bartholomew River was in 2002, designated as the boundary between Rivers and Bayelsa States, instead of River Santa Barbara.

Justice Ekwo ordered the commission to promptly produce the 12th edition of the Administrative Map and restore River Santa Barbara as the inter-state boundary between the two states, as it was in 1996 when Bayelsa State was carved from Rivers State.

According to the Court, NBC, was duty-bound to comply with a 2012 judgement of the Supreme Court that affirmed River Santa Barbara as the boundary between both states, by correcting its self-admitted error of designating River San Bartholomew as the boundary.

The judgement followed a suit Rivers State lodged before the court for an order of mandamus to compel the NBC to correct the error in its 11th Edition of Administrative Map that gave location of the disputed oil fields to Bayelsa State.

The court noted that NBC had in a letter dated July 3, 2002, while responding to protest by Rivers State government, admitted its mistake and promised to rectify it in the 12th edition of the administrative map. However, owing to NBC’s failure to amend the map as it conceded to, Rivers State, in 2009, took the matter before the Supreme Court.

Cited as defendants in the matter including the respondents in the matter included the Attorney-General of Bayelsa State and the Attorney-General of the Federation. In a verdict it delivered in 2012, the apex court, granted reliefs Rivers State sought before it and ordered NBC to rectify the boundary mapping error.

In view of delay by the NBC to execute the Supreme Court’s directive, Rivers State, in August this year, lodged the suit Justice Ekwo decided on Monday.

The high court Judge directed that his judgement should be served on relevant statutory bodies, especially, the Revenue Mobilisation Allocation and Fiscal Commission and the office of the Accountant-General of the Federation to enable an immediate recomputation of the amount of oil revenue accruable to Rivers State with the transfer of Soku oil field to it.

#Newsworthy…

Agencies, NOGASA plans to nail oil vandals.

…We are opposed to adulteration

For the umpteenth time, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has assured relevant government agencies of its willingness and capability to join forces with them to crush all culprits of petroleum products adulteration.

Mr Chinedu Ukadike, National Public Relations Officer of NOGASA, made this known in a statement issued on Friday in Abuja on outcome of the inauguration of Kaduna, Anambra and Abia executive councils.

He quoted Mr Benneth Korie, National President of NOGASA, to have made the promise in his address while inaugurating the councils.

According to him Korie, who was represented by Mr Tunde David, the Secretary-General of NOGASA also promised to take on pipeline vandals whose activities disrupt petroleum products exploration and distribution.

He said: “We are here today to formally establish our association in Kaduna; it is indeed noble platform for the processes of supplies of petroleum products distribution in the state.

“Our objective as widely advertised is to ensure petroleum product supplies are carried out under ethical standards nationwide and for suppliers to operate in peaceful environment while doing their businesses.

“We are opposed to adulteration of petroleum products, vandalisation of pipelines and other illicit vices in the oil petroleum industry.

“We are here to promote uprightness, nobility and integrity in the activities of petroleum product supplies, we have been canvassing for obedience to laws of the land for doing things right.

“We therefore reach-out to all stakeholders, especially governments and security agencies, to join hands with us to collectively sanitize the industry and make the environment more conducive for all Nigerians.”

He also quoted Korie to have said that the association was inaugurated in Anambra to promote ease of oil and gas business in the state.

“This is in preparation for better ways of doing oil and gas supply business in Nigeria usually with regards to the distribution of petroleum products.

“As an enviable association it is our desire to ensure that our members indeed engage in this global business to the best means.”

He further mentioned that the association would break new grounds in its cause for better and more resourceful representative platforms of petroleum products suppliers in Abia and Nigeria at large.

“I have no doubt that NOGASA’s entry into the petroleum product supplies will bring meaningful innovation and development to the business premises.

“NOGASA is positioned here in Abia state to tackle challenges and partner with governments to discourage illicit vices like adulteration of petroleum products and vandal of pipelines.

“We also want to stop quack suppliers which are economic sabotage that has done damage and degraded the integrity of businessmen and women in the petroleum industry.

“This is why we are determined by interest and policies to work most assiduously to discourage these vices.

#Newsworthy…

Update: SON set to requalify gas cylinder.

…destroys 5000

As part of efforts to stem the rising wave of gas explosions and in line with its mandate to ensure the safety of lives and property across the country, the Standards Organization of Nigeria (SON) has disclosed that it has opened collaborative talks with gas plant owners and other relevant stakeholders in order to commence the re-qualification of used gas cylinders.

However, the agency stated that the exercise would appear daunting given individual ownership of liquefied petroleum Gas Cylinder in the country.

In a related development, more than 5000 substandard gas cylinders worth N51.3 million have been publicly destroyed by the Standards Organisation of Nigeria (SON).

According to the standards body, the cylinders destroyed were imported into the country without the SON’s Conformity Assessment Programme certification and did not comply with specifications in line with the Nigerian Industrial Standards (NIS) 69.

The Director, Inspectorate and Compliance Directorate, SON, Engr. Obiora Manafa, at the destruction exercise at one of its warehouses in Lagos, recently said the unscrupulous importer brought in 12.5kg cylinders not meant for camping gas, pointing out that the maximum capacity of cylinders required for camping gas are 3.5kg, 5kg, and 6.25kg.

In his words,” Those are the sizes of cylinders allowed for camping. Using 12.5kg you have to mouth the burner for camping the gas and when you are cooking, you are exposing a large number of gas to direct heat which is not allowed. It is a threat to safety.

“We did not give any importer approval to bring in 12.5kg for camping, but approvals for 3kg, 5kg, and 6.25kg for camping. In this case, the importer brought in cylinders of 12.5kg as camping and that is why we have seized it for destruction because we cannot allow it into the market.”

#Newsworthy…

Nigeria spends N5.075 trillion Yearly On Petrol, Diesel Powered Generator.

… African development bank disclosed

Nigeria and its business community spend a whopping $14 billion (N5.075 trillion) per annum on petrol and diesel powered generators. This has contributed in numerous ways to increasing cost of doing business in the country, in addition to air and noise pollution.

The disclosure was made by the African Development Bank (AfDB) Senior Director for Nigeria, Ebrima Faal, in his reaction to the bank’s approval of $210 million financing package to the Federal Government, for the Nigeria Transmission Expansion Project (NTEP1), which seeks to rehabilitate and upgrade the nation’s power lines and improve distribution and supply.

Faal, in a statement said “Nigerians and their businesses spend $14 billion annually on inefficient and expensive petrol or diesel-powered generators. This project will contribute significantly to the reduction of Nigeria’s power deficit, decrease air and noise pollution and reduce the cost of doing business.”

The AfDB recently approved $210 million financing to the Federal Government, for the Nigeria Transmission Expansion Project (NTEP1), to rehabilitate and upgrade the nation’s power lines and improve distribution and supply.

Upon completion, the project will reduce the use of small-scale diesel generators and therefore contribute to the reduction of GHG emissions by saving approximately 11,460ktCO2 per year.

Also, it would significantly improve Nigeria’s electricity supply, and directly impact the economy, industries, businesses and the quality of life of the citizens.

Transmission Company of Nigeria (TCN), is expected to execute NTEP1 as part of a $1.6 billion Transmission Rehabilitation and Expansion Programme (TREP).

The bank’s financing, which comprises $160 million loan, and an additional $50 million loan from the Africa Growing Together Fund, will support construction of 330kV double circuit quad transmission lines and substations across the country.

The AfDB said the project will upgrade existing 263 km of 330kV lines, while adding an additional 204 KM of new lines to increase TCN’s wheeling capacity, stabilise the grid and reduce transmission losses.

“The project will create about 2,000 direct jobs- 1,500 during construction and 500 during operations especially for youths.30 percent of these jobs are expected to be taken by women. By increasing electricity supply to Small and Medium Enterprises, the project will foster the creation of additional indirect jobs,” the AfDB further said.

The Bank’s Acting Vice-President for Power & Energy, Wale Shonibare, said implementation of the project would increase evacuation capacity from the south of the country towards the north, where power supply is limited. “NTEP1 will increase the grid transmission stability and capacity, and reduce the amount of stranded power, whilst improving power export and regional power system integration to the West African Power pool, especially through Niger and Benin interconnections,” he said.

#Newsworthy…